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COMPANY RESTORATION IN THE NEW NORMAL ©2020 Donald H Turner From the mind of Don Turner – PART 2 NOT YOUR DADDY’S RESTRUCTURING, BUT RESTORATION

In Part 1, we identified some of the more important characteristics that will be driving the New Normal. In this discussion, we will focus on how business professionals should be looking to respond to the New Normal.

First and foremost, it is clear that many companies are and will be faced with survival, pure and simple – doing whatever they can do today to ensure they are in business tomorrow. This is a reality that must be dealt with. Some will make it, many won’t.

That aside, if the company has enough “liquidity runway” to reenter the marketplace than the question is “how?” As we return to the world of commerce, it will be clear to all involved that is not going to be “business as usual.”

Given the current situation, the natural tendency is to turn to the methods that fall under the topic of “Turnaround” or “Restructuring” in an attempt to return a company to prosperity. Even so, I believe we will quickly find that these traditional ways of  “fixing” organizations are insufficient. I believe these Restructuring/Turnaround approaches must be modified and evolved to reflect the realities of conducting business in the New Normal.

To differentiate this new perspective,

I’m suggesting that conducting commerce in the New Normal will require a “Restoration Strategy” mindset. We aren’t simply “restructuring” companies, we are “restoring” them to going entities. We aren’t simply “turning around” companies, we are “restoring” their business models modified for the realities of the New Normal. Restoration will require answering questions, developing approaches, and executing tactics that have never been part of a “typical” Restructuring or Turnaround effort.

I’m suggesting that the fundamental difference between Restructuring and Restoration will be the underlying environment. In a Restructuring situation, the company itself is distressed. In a Restoration environment not only the company, but it’s a marketplace – Customers, Suppliers, Lenders, everyone – are distressed also. This extra level of calamity will force us to conduct commerce in entirely new ways with new levels of focused cooperation.

TYPICAL RESTRUCTURING

To understand the concept of “Restoration” – which builds on “Restructuring” and “Turnaround” methodologies, let’s make sure we understand what is typically involved with the Restructuring/Turnaround.

Please note, we are taking the concept of “Workout” out of the equation here. In my distressed company lexicon, a “Workout” is when a company is already in or close to some form of receivership and it is likely no longer a going concern. In this case, the focus is working with Banks and Creditors to maximize asset monetization. Workouts in the New Normal will clearly be common, but the focus of this article is with businesses that have the potential to restore themselves and prosper.

In contrast – as someone who has been involved in a few turnarounds over the years – I view a Turnaround as a situation where the company is distressed and clearly in trouble but there is a possibility of “fixing it” and making it a healthy, growing concern again. I would be the first to admit that it doesn’t always end that way but the difference is the intent going in. That intent drives what you immediately do in a Turnaround situation.

As a common discussion point, let’s all reacquaint ourselves with “Turnaround 101” by discussing the four major stages – as shown in the following exhibit:

Let’s briefly review each stage.

Stage 1 – TRIAGE – this first stage is the most critical and essentially represents a “GO” or “NO

GO” decision. You must quickly assess the company in terms of liquidity, resources, operations (ED: “processes”), and its marketplace. Note, a comment on this last item. Some turnaround efforts ignore an effective look at the marketplace and after fixing the company find out that it should not have been fixed in the first place because of an unattractive market based on size, growth, competitors, profitability, etc. – i.e., remember to look at the external marketplace during Triage. Back to this initial assessment, you are trying to answer the question, “do I have something worth saving as a going entity?” Your focus is on items such as liquidity, burn rate, and Customer communication (i.e., read “retention”). The bottom line, you are focused on what we call “stopping the bleeding.” Further, what is often not realized is that in this early stage of triage, you must simultaneously start developing a “vision” for the future of the Company that can be communicated to Customers and Stakeholders (i.e., employees, board, investors, creditors).

Stage 2 – STABILIZE – this second stage is focused at creating consistency and predictable operations – particularly in terms of burn rate. That is Revenue less Expenses on a cash basis. One of the fundamental tenets of Japanese Total Quality Management developed back in 1954 is that to “fix something” you must do whatever you are doing – no matter how badly you are doing it – in a consistent manner. Starting your “fixing”, your initial focus is outward-looking – repairing/improving any and all Customer-facing activities such as product quality and delivery. At the same time, you communicate to Customers the actions you are taking to assure them of the company’s health and ongoing vitality. Internally, you concentrate on those items in the “Delivery Cycle” – specifically Sales, Delivery, and Customer Service. Generally, these can all be fixed relatively quickly. As the “Delivery Cycle” is stabilized you can then later turn your attention to the “Development Cycle” that includes Marketing/Development/Engineering (ED: this latter cycle has a slower “velocity” or “cycle time” and requires more time to change). In stabilizing the company, your greatest focus is on those items that can make an immediate, positive impact on Cash, Customers, and Delivery. During this stage, you also begin communicating the “vision” that was developed in Stage 1 to Customers, Shareholders, and Employees. Particularly with Employees, you must encourage your top employees to stay and embrace the vision (ED: in a typical distressed situation your best employees most likely already have their Resumes “on the street.”)

With Vision, there is clarity of purpose. Without Vision, there is chaos of existence.

Stage 3 – PROFITABILITY – If you have effectively stabilized the company to some form of consistency than the next stage is focused at profitability – generating EBITDA and a cash stream that ensures sustainability. There are countless techniques Turnaround Professionals use – dependent upon the situation – but some of the more obvious ones might include: product line rationalization, Customer attractiveness prioritization, revenue-generating Customer service, alternative Delivery approaches, cycle time reduction, product testing improvement (ED: product quality may take longer), etc. At this stage, you are also starting to work the “Development Cycle” including the product roadmap for new offerings that might be more attractive to your Customers. The bottom line, at this point you have a going concern and your next focus is how to put the company on a healthy growth track.

Stage 4 – GROWTH – with a going, profitable, concern you are now looking more strategically to the future in terms of markets and offerings. You are addressing questions such as: “Do I have the right offerings and business model for my current market”; “What else can I sell to my current Customers”; “Can I use my offerings or core competencies to expand to other markets” – i.e., generate new Customers. Generally, most of these questions all fall under the auspices of the Ansoff Matrix – which represents an effective framework for identifying growth/risk opportunities (ED: have used this framework dozens and dozens of times to help identify, evaluate, and select growth initiatives for an organization). The final, bottom line “big question” is “What company focus – i.e., “strategy” – will generate the maximum return for the Investors?”

These are the basic stages of a typical Turnaround. Given the many possible problems and the many possible solutions, Turnaround approaches are almost always modified as needed for a specific distressed situation.

HOW IS RESTORATION DIFFERENT?

What is different about a “Restoration” versus “Restructuring” as it relates to the New Normal? The actual stages of a Restructuring remain the same, but the underlying conditions are significantly more formidable – creating greater requirements and likely entirely new requirements to successfully “restore” the company to a healthy status. You can think about these requirements in four major categories – Environment, Personnel, Liquidity, and Emotional Intangibles. I am sure we could address more, but let’s focus on these for now.

ENVIRONMENT – as mentioned, in a typical Turnaround the Company is in a distressed state whereas in the New Normal almost every business surrounding the Company will be in some form of distressed state – i.e., everyone is “in the same boat.” The good news is that everyone around the table will be acutely more focused and amenable to “making something happen.” This reminds of the quote from the 18th century English writer, Samuel Johnson, who said;

“Depend upon it, sir, when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully.”

The environment in the New Normal will be characterized as a fierce determination to survive that will force business professionals to develop and consider new approaches to keeping their business alive – particularly through the early stages of the New Normal. Expect less long-term relationship development – “survival timing” simply won’t allow. Discussions between marketplace partners will be one of “putting your cards on the table” and asking “what can we make happen between us that will be a win-win?” Golf course discussions will become lifeboat discussions.

PERSONNEL – in a normal Turnaround situation your best employees have ample opportunity to go elsewhere – that is why they are your best. However, in the New Normal their prospects of leaving are diminished – that is the good news. The bad news is the increased challenge to motivate people when they feel they are “trapped.” That said, I envision this as an opportunity to build an esprit de corps in your company culture like never before. In our next installment where we discuss “Culture”, we’ll explore this a bit more. Suffice it to say that the New Normal will create the “potential” environment where coworkers become akin to “battle buddies” and all that implies – ask anyone who has been in armed conflict about this significance. Note, an important point is that leading battle buddies will require a far more effective leadership than supervising coworkers.

LIQUIDITY – in the New Normal everyone has limited liquidity, not just you but your Customers, your Suppliers, Your Lenders, etc. Everyone wants to conduct business but everyone also has limited buying power to purchase goods and services. Surviving and then prospering – relatively speaking for at least the short-term – in the New Normal will require creative ways of using limited capital to conduct business. I fully envision the barter system to be resurrected for certain types of transactions – particularly in the service sector – as well as creative consignment approaches for getting product in front of potential buyers.  Payment terms will have to be negotiated almost simultaneously along the entire supply chain.

EMOTIONAL INTANGIBLES – by their very nature normal Restructuring efforts place tremendous stress on everyone in the business. Be that as it may, in Restoration – under the New Normal – we can expect a higher level of emotional stress throughout the organization than we have never seen before. The options we face under the New Normal are limited and with limited options comes an accompanying realization that this is truly a “do or die” situation. Decision-Makers will agonize over their choices more than they ever have – as will everyone in the organization whose livelihood is impacted by those decisions.

As we can see, these underlying factors of the New Normal will place tremendous pressure on every business professional to get creative. I believe one positive outcome – and I actually think there will be many – of these pressures is for a greater level of transparency in transactions between parties. The urgency of “restoring” business in the New Normal simply will not allow for the typical “games” often found during the sales and negotiating activities.

In many ways, the Restoration of companies in the New Normal can be viewed as “Restructuring on Steroids.”

What should businesses do in trying to respond to the New Normal? In Part 3 we’ll discuss some thoughts about specific actions.

 

 

 

Dpm Turner

don@turnerworld.com

678.361.3313

www.turnerworld.com

 

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

 

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COMPANY RESTORATION IN THE NEW NORMAL ©2020 Donald H Turner From the mind of Don Turner – “Creating Clarity in a World of Complexity

“I’m not Chinese. I thrive in interesting times.” ~ Charles de Lint ~

In both culture and commerce, we live in what many would consider “interesting times” – as stated in the old Chinese proverb. A proverb, by the way, that is intended as a curse, not a blessing.

Our “interesting times” have officially decimated the worldwide economy, ravaged social norms, and rattled the psyche of many. As we come out of this pandemic-driven calamity we face a truly “new world.” Whether it will be a “brave new world” is yet to be seen – but a “new world” it will most certainly be.

I have learned in a career-focused at disruptive technology marketplaces – often leading edge – is that change is a threat to the meek but an opportunity for the bold. Navigating the New Normal will take – as we will discuss in future parts of this Article – an intrepid head and an empathetic heart.

As a serial CEO and Business Strategist, I have also learned that identifying change is part and parcel to an effective strategy. In its simplest form, the “essence” of strategy is to “look over the horizon” and identify macro trends – i.e., read “change” – that justifies the investment. The need to understand what is over the horizon and see those macro trends that merit the investment of manpower, capital, and time is more important than ever.

With this four-part article – that will be published over the next several days – I thought we would explore what the future holds for all of us. The four parts are Part 1 – The “New Normal” – No Going Back to Normal Part 2 – Not Your Daddy’s Restructuring, the Idea of Restoration Part 3 – 5 C’s Restoration Strategy – the first 3 “C’s” Part 4 – 5 C’s Restoration Strategy – the final 2 “C’s”
Writing is a cathartic process for me that forces me to think more thoroughly through ideas and concepts. It is my hope with this article to prompt some productive discussion about what the New Normal will be, how companies can start moving from isolation to the New Normal, and finally, what the long-term implications are for conducting business.

Thank you in advance for taking the time to read this and even more so to comment – I am interested in everyone’s opinion since that is how we all will learn and move forward together.

THE “NEW NORMAL” – NO GOING BACK TO NORMAL
©2020 Donald H Turner

I keep hearing from both mainstream and trade media talk about “when things will get back to normal.” From my perspective, that is simply wrong thinking. There is NO getting back to normal after this global disruption of – in our lifetimes – unprecedented scale.

As business professionals, we are being forced to take a fresh look at the fundamental societal changes that exist now and will be occurring in the future and understand how they will drive new ways of conducting business.

Simply put, we must prepare for the “New Normal”

After giving it considerable thought over the past several weeks, I’ve developed four observations that I’ll share here as fodder for discussion.

FIRST, the New Normal will NOT come all at once. It will evolve in phases over the next six to twenty-four months as we move from isolation to controlled distancing to an environment that – once vaccines are readily available – will allow us to interact face-to-face again on a safer basis. One thing I know for sure is that many individuals throughout our society will be permanently “scarred” from this pandemic and never embrace face-to-face interaction as they did in the past.

SECONDLY, the New Normal will certainly contain “holdovers” from our current isolation phase that will represent – in some cases radical – changes to our lives in general and how we conduct business specifically. Yes, we will make more use of, be more comfortable with, and find ways to enhance the virtual experience that we have been forced to at the present moment. One individual I recently read said, “We’re currently in the epicenter of the biggest remote-work experiment in history….” Clearly, there will be part of the population that permanently embraces “electronic presence” over “physical presence” and will want to continue to live and work that way.

THIRDLY, the New Normal will change the commerce landscape – there is simply no getting around that. Some products and services will simply become irrelevant, while others become more important. Of even more interest are the new solutions that will arise to support – if not enable – the New Normal. Will movie theaters ever enjoy their historical attendance as many find they have enjoyed in-home entertainment more? Will discretionary “claustrophobic” air travel ever reach traditional levels as many will value individual travel freedom in a car? Will this drive more travel domestically versus overseas? Will office space ever be viewed with the same attractiveness? How will relationship-building evolve as we simply don’t have the same level of physical interaction as in the past? What will take its place? Will we focus less on the trappings of a business environment and focus more on what individuals are saying? Answering these questions and many more are all part of trying to understand the New Normal.

FOURTHLY, we – as a country and more specifically as a consumer population – are going to be taking a harder look at our trade with foreign powers. Yep, you guessed it – specifically China. China has managed to reposition itself in the global mindset from one of historical suspicion to blatant cynicism. At this point, I don’t believe anyone knows the real origin details of the coronavirus and who is responsible – or is it simply a force majeure of epic proportions. That said, this we do know:

  • China delayed letting the world know about the coronavirus – there was a government-driven movement to suppress information about the coronavirus – even threatening the doctor who warned his colleagues about a possible outbreak. On 3 Jan 2020, Wuhan police summoned and admonished him for “making false comments on the Internet” – forcing him to write a retraction. Unfortunately, this ophthalmologist, Li Winliang, later personally contracted the virus and has since died at the age of 33.

 

  • U.S. healthcare found out quickly that too many of our critical supplies – including pharmaceuticals – were made in China. Our healthcare supply chain was negatively impacted by the virus in China, creating significant problems in the U.S. Furthermore, as China rushed to provide us with needed supplies like N95 respirators, ventilators, and other medical supplies we found out they had serious quality problems and were all but unusable. There is already a movement to take a fresh look at what we allow to be manufactured in China versus in the good ole USA. Hopefully, we will recognize that having a stuffed toy being made in China is of far different importance than from having a life-saving medical device. I am all for a global economy but I’m also all for prioritizing our supply chain and identifying those items that independent of the cost are best manufactured at home.

 

  • China has both misrepresented and misreported coronavirus statistics to the world. There has always been skepticism about information from China, but now it has become blatant. In a world where we are seeing in the hundreds of deaths per million people – e.g., Spain 455, Italy 399, France 310, UK 241, with the US at 129, etc. – China reports “3”. That is right, in the country where it all started and I would suggest doesn’t have the Healthcare System of the aforementioned countries, they are reporting 3 deaths per million people. In case you’re curious about what other countries of importance are reporting numbers similar to China you don’t have to look any further than Russia – another bastion of information transparency – which is also reporting “3” deaths per million people. The bottom line, it is difficult to do business with someone you can’t believe and simply don’t trust.

So, these observations beg the question, “what does all this New Normal mean for business?”

In Part 2, we’ll address the idea that managing in the New Normal will require an approach that goes beyond what we have typically referred to as Restructuring or Turnaround. It will call for an approach that I’m referring to as “Restoration.”

Dpm Turner

 

don@turnerworld.com

678.361.3313

www.turnerworld.com

 

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

 

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When Opportunity Presents

NSA Atlanta Chapter President

During my college years, I learned that if I completed my term papers early, I would have the flexibility to avail myself of interesting opportunities.  That usually meant enjoying social events with my Fraternity Brothers. Besides, I never saw the point of adding stress to my life by waiting until the last minute to tackle a project.

Last weekend was a great example:

Last week, my friend Michael Moore invited me to join him for a Saturday Morning meeting of the Atlanta Chapter of the National Speakers Association (NSA).  I was not familiar with the NSA, but I would like to become a better speaker.  I called Michael for more information.  He told me he had been a member for many years and thought I would enjoy the event.  He said the meeting would begin at 8:30 a.m. and end at noon.  Additionally, he reminded me to bring my mask as the meeting would be fully Covid-19 compliant.  Since I had already completed and published my weekly blog post, my Saturday was clear.  I was sold. I registered for the event immediately after our call.

As with most meetings, the first thirty minutes is usually for check-in and networking.  It is rare for me to attend an event in Atlanta that I do not encounter people I know.  Arriving early provides an opportunity to meet new people and catch up with friends.  I made plans to arrive at 8:30 a.m.

Background of NSA

The National Speakers Association (NSA) was founded in 1973 to help its members become more successful by providing education, tools, and resources.  NSA members include speakers, trainers, educators, humorists, motivators, consultants, and authors from a variety of industry segments.  NSA helps build eloquence, expertise, enterprise, and ethics.  Their Mission is “Empowering professional speakers to thrive and influence. We elevate excellence, share expertise, and challenge one another to improve.”  NSA’s values are to “provide mutual support, shared success, giving back, and cooperation over competition to build a bigger pie.”  Clearly, this organization is aligned with my goals and values.

Full Covid-19 Compliance

I arrived on-site at about 8:30 a.m. and was greeted at the door by my host and another gentleman who I did not know.  I later learned that he was the Barry Banther, the keynote speaker, and Incoming NSA National Board Chairman.  I proceeded to ‘checked-in’ where I filled out a brief Covid-19 questionnaire and had my temperature checked.  As I was obviously healthy and wearing my mask, I received my name badge and was directed to the meeting room.  Already in the room, several people were engaged in conversation. You know, networking.  Not surprisingly, I encountered a colleague and the speaker for my upcoming BENG Atlanta Chapter meeting.  Before the official meeting began, I was able to ‘catch up’ with my colleague and prepare my speaker for Tuesday’s meeting.  After catching up with those folks, I encountered a third acquaintance who had attended a few of my events. That is networking in Atlanta.  You usually find people you know at any event you attend.

The meeting room was staged to accommodate the attendees as well as those participating via ZOOM.  The layout included a well-appointed elevated stage for individual presentations and interviews.  It was well-lighted and flanked by video monitors.  It was not a particularly large room, but it could easily accommodate sixty people.  It was more than adequate for the twenty members and guests seated appropriately for social distancing.  It is an excellent venue for my meetings.

The Meeting

Thurman Interview

The formal meeting began promptly at 9:00 a.m. with a welcome and presentation of the organization’s mission.  This was followed by the introduction of guests and our hosts.  The next item on the agenda was the Installation of Chapter Officers for 2020 – 2021.  The ‘warm-up’ Speaker was Dan Thurman who talked about his experience starting out as a professional speaker.

The Keynote

Barry Banther, the Keynote Speaker was impressive. I suppose that should be expected of the incoming NSA Chairman.  Barry’s talk was titled “How to Build

Barry Banther Keynote

a Sustainable, Profitable, and Fulfilling Business as a Speaker.”  It was an excellent presentation!  He used a lot of stories to drive home his points, holding our attention.  His talk was particularly relevant as it was similar to one of mine. I received many ideas to improve my presentation which justified my attendance.

Conclusion

There are good reasons to avoid procrastination.  In addition to creating stress, procrastination can result in lost opportunities.  If you believe, as I do, that networking and continuous learning are important professional skills, you should engage in those activities whenever possible.  For me personally, I believe that public speaking is a fundamental skill to be developed. I was fortunate to be able to accept my friend’s invitation to the NSA Meeting.  Completing my work early in the week paid off big-time.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

 

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How to Design A Successful HR Strategy For Returning To Work During Pandemic

Successfully-Returning-To-Workplace: by Jim Cichanski and Jamie Sieja

The past few months have been unpredictable as the pandemic has taken a toll on most businesses. Almost all small to midsize companies have learned to adapt to these arbitrary and varying new working environments. However, it seems the change is actually going well for workers. 57% of U.S. employees think COVID-19 has changed the way we work for the better.*

Workplace Flexibility Moving Forward After Coronavirus

Therefore, it’s time to start looking ahead and getting businesses back on track by implementing updated work policies as the economy restarts. It’s imperative that Human Resources communicate their restructured plans to ensure a healthy and safe operational environment. Jim Cichanski, CEO of Flex HR states “we are working with hundreds of clients to bring back the workforce into their offices. The one key message I urge companies to convey to their employees encompasses the measures you are taking to keep them as safe as possible upon returning to the office. Conversely, be careful not to over promise-keeping your workforce completely safe. The research is still unclear as to exactly how an individual can catch, and spread, COVID-19; therefore, there is no way to create a perfectly protected environment while at work.” While some organizations have begun opening their doors for staff to return to physical locations, the majority of businesses are acclimating toward a remote workforce. Consequently, this means companies are fully transitioning to flexible working arrangements in the foreseeable future.

“If workplace flexibility is an expected employee perk, then employers will continue to offer that benefit to hire and retain quality people, which should be a prime the goal of the employer,” says Karen M. McGrath, assistant professor of finance at the Freeman College of Management at Bucknell University. “So as long as productivity remains strong, and employees experience greater job satisfaction, then I do not see things changing.”

Employers and Staff Returning to the Workplace

“HR executives should be the leaders in transitioning employees back to the workplace,” says David Osborne, chief executive officer of Virgin Pulse, a wellness company. Several employers are phasing employees back into offices, staggering workdays, moving office spaces (or cubicles) 6 -10 feet apart, and conducting temperature screenings before entering the building. Furthermore, other companies are asking their workers to self-administer temperature checks at home and attest that they have no COVID symptoms before entering their workspace each day. All of these transformations throughout the organization need to be relayed to all employees to ease their anxieties and to provide peace of mind. In short, companies are being trusted by their employees to do the right thing, follow the right guidance, and bring them back safely.

Overcoming New Office Challenges During The Pandemic

As the impact of Coronavirus across the country is lingering, one new challenge that organizations are experiencing is navigating day-to-day productivity efficiently. Thus, it’s essential to design a return to work plan that is sufficiently adaptable to evolving recommendations, guidelines, and orders issued by federal, state, and local governments, such as the Families First Coronavirus Response Act (FFCRA). Additionally, employers should reference guidelines published by the U.S. Centers for Disease Control and Prevention (CDC) and the Occupational Safety and Health Administration (OSHA), which summarize key considerations for preparing workplaces when bringing back employees.

Human Resources Is Vital Right Now

Business owners need to invest in the proper HR expertise now more than ever to successfully strategize and manage the modifications of new office policies. Businesses around the nation are trending towards outsourcing their human resources. Companies like Flex HR, Inc., a full-service HR firm headquartered in Johns Creek, GA, oversee these adaptable transitions all while mitigating possible liability risks for the employer. HR professionals have become the principal leaders of positive change; inventing new ways to work, altering job functions, developing new learning and communication methodologies. “The HR profession has taken on a heroic role. I am more inspired and energized to support the HR profession than ever. HR leaders are rolling up their sleeves, partnering with IT, facilities and legal functions, and figuring out how to react, respond and re-engineer all aspects of work,” notes Josh Bersin of Human Resource Executive.

Streamlining business complexities during the COVID crisis is perplexing in itself. Leadership is currently overwhelmed in making effectively-balanced valuable decisions for both staff and the organization. Simultaneously all while trying to enforce the company’s core values and safeguarding the well-being of employees. To ease the burden of management, HR companies, like Flex HR, have created “helpful tips for managing the Coronavirus crisis” online, specifically addressing COVID-19 business impact concerns. For checklists, sample return to work letters, and other essential information for having your staff return to work, contact Flex HR now.

*Source: WalletHub using https://datavisu.al/

 

Jim Cichanski

Jim Cichanski, the founder, President, and CEO of Flex HR, Inc., has 30+ years of experience in human resources, holding senior-level positions in companies that were privately held, pre-IPO, foreign-owned, joint venture, Fortune 50 and one labeled the “fastest-growing F1000 in America.”

Jim Cichanski
Flex HR, Inc.
President and CEO
Flex HR, Inc.

 

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

 

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Job Search in the “Latest” New Normal – Know Your Options

Cutters Cigar Bar

This was a good week.  It was not a good week because I recruited a new consultant, which I did.  It was not because I accomplished all of my planned tasks, but I did.  And, it was not a good week because I had several very productive meetings.  All these activities are noteworthy of course, but it was my ability to mix these activities with my favorite personal pastimes that made the week so enjoyable.  Yes, I accomplished quite a bit and had a lot of fun in the process.

The high point of my week was my meeting with Walt.  I was introduced to him, three weeks ago by Dave, a mutual friend.  Dave reached out to me to see if I would be interested in talking with him as he needed help with his job search.  I have great confidence in Dave’s recommendations, so I invited him to make the introductions.  Shortly after that, Walt and I were having a telephone conversation.

Our first conversation was relatively brief.  I learned that he had a background in the food distribution segment with experience in business development and as a category manager. Walt advised me that he had been terminated within the past two weeks, having been furloughed by the pandemic.  He did not have a current resume to share, at that time, but promised to send a copy when it was ready.  He said that it has been a long time since he has had to look for a job.  Actually, this may be the first time he has been in a job search since he began his career.  I also learned that he is a cigar aficionado, familiar with my favorite cigar bar.  We ended the conversation with my commitment to follow up after I review his resume.

We met mid-afternoon, Thursday at the cigar bar.  After making our cigar and beverage selections we found seats at a table in a private meeting room.  We made a toast and got down to business.  He handed me his resume as he began to recap his background.  Walt is an extrovert.  He is friendly, engaging, and interesting.  We are about the same age and have much in common.  Our meeting was off to a great start.  He laid out his history as a Category Manager and Business Development Professional in the food distribution industry segment.  He explained that he was furloughed at the beginning of the lockdown, then recently terminated.

We spent the better part of two hours together.  I noted that he is better off than most job seekers.  He has a severance package including a non-compete clause.  He has a solid network and excellent references.  Already, he has reached out to make them aware of his situation so they can be helpful.  He admitted that he is not savvy about networking groups or how to find them. He said he is open to new opportunities.

When Walt finished presenting his background he asked for my advice.  I commended him on his positive outlook and his willingness to consider new opportunities.  We discussed the obvious difficulty in the foodservice segment; however, I foresee opportunities helping his prior customers with their purchasing and supply chain issues.  We also discussed pursuing opportunities in non-food distribution.  I told him that many are finding success by taking freelance consulting projects as a bridge strategy to find full-time employment.  Finally, I suggested that his search should include smaller companies with upside potential.

His resume, hot off the presses, was prepared by an HR professional, not a professional resume writer.  Although it is well organized and easy to read, it is bland and lacks a call to action.  It does not reflect the contributions he has made to his employers and his positioning statement lacks clarity.   I can help him with that issue.

His final question was about my program.  Could I be helpful, and how I was paid for my services?  I explained how the three parts of my business, (New Century Dynamics Executive Search, ITB Partners, and Executive Career Coaching) operated and how each could be helpful to him.

At the end of our conversation I agreed to the following deliverables:

  • Help him plug into the market via networking groups.
  • Review his resume and LinkedIn Profile – make recommendations.
  • Provide clearer background information about our capabilities.
  • Make Strategic Introductions to my network.

Walt is hitting the market at a difficult time.  The economy is coming out of recession, it is the middle of summer, and his industry segment is under pressure.  As a Baby Boomer,  he has demographic challenges. On the plus side, he has a solid skill stack and a positive mindset.  His severance package is a plus.  He has a good network and great references.  Most importantly, he is coach-able and open to new opportunities.  Walt will adapt to the realities of this market as he has a better understanding of his options.  I am confident that it won’t be long until he will be gainfully employed.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

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Job Search in the Latest “New Normal” – Recruiting and Selection Dynamics

Networking is still key!

It is normal for me to talk with a lot of job seekers and this week was no exception.  One conversation was remarkable, albeit in a disappointing way.  Steve was referred to me by a colleague as his job search has been ineffective.  Happy to help, I scheduled a phone call to exchange information and to learn about his career interests.  The gist of our conversation is that Steve is having difficulty generating interest from employers.  He is an experienced professional with an advanced degree, but he is uncomfortable networking.  He is reticent about making even a small effort in that direction.  The bulk of his search has been about submitting his resume to company portals and online job boards.  He has not done much research into other resources, tools, and techniques to leverage his efforts.   I explained that up to 85% of people find their jobs through networking, while online applications account for about 10%.  I encouraged him to spend his time accordingly.  It was a difficult conversation. My advice did not seem to resonate.  The best I could do was offer suggestions and encourage him to check in from time to time.

My last post was the first in a series of articles to explore Job Search in the Latest “New Normal.”  In that post, I discussed the importance of situational awareness to understand the dynamics of the job market.  One must have three hundred and sixty-degree understanding of playing field to ensure a successful outcome.  The impact of Covid-19 has accelerated many trends already evident in the market. In this post, I explore evolutionary aspects of recruiting and selection processes the job seeker may encounter.

Although the economy is improving and companies are rehiring, it is unclear as to the continued pace of the recovery.   Women are said to be hardest hit by the pandemic related layoffs.  They are concerned about the economic impact on their family’s well-being.  They wonder how much time will pass before they begin earning a regular paycheck again.  If they have school-age children at home, their careers may be put on hold as school systems opt for virtual education.  For many, their concentration is short-term survival, less so for the long term.  This is reasonable and probably good thinking.

If you believe the economic forecasts, employers are planning for a favorable fourth quarter.  Their recruiting activity must begin now if they expect to be staffed by Fall.  They are using virtual tools to facilitate more of their recruiting, selection, and onboarding processes. Most employers are soliciting applications through online portals.  Additionally, they are likely to use applicant tracking systems (ATS) to make the process more efficient. Video interviews have gained greater acceptance, especially for senior-level positions.  Now, I am hearing that these tools are becoming commonplace across a wider range of job categories.  This makes sense to me as video conferencing is an obvious solution for recruiters who may be working from home.   These tools are effective, affordable, and easy to use.  The job seeker must become adept with the virtual interview.

The pace of hiring is not uniform across all industry segments.  The media has reported several stories about iconic brands that have announced plans to hire a significant number of new employees.  On the other hand, many smaller businesses are struggling to survive or planning to close.  Many of the latter are service-sector operations, including restaurants.  Finding job opportunities in this segment is problematic.  One can reasonably expect six months to a year or more before the economy reaches the pre-pandemic staffing level for this segment.  You should consider redeploying your skillset for opportunities in growing industry segments.

Tips to Improve your search:

  • Networking is still the key
  • Embrace Social Media
  • Think creatively – consider your transferable skills
  • Become comfortable with video interviews
  • Consider freelance work as a bridge strategy

We cannot fully appreciate the potential economic downside or the possible upside as we adapt to Covid-19.  Assuming that surrender is not an option, we must adapt.  The recruiting and selection process has gone virtual, so we must become proficient with virtual tools and processes.  Networking is still the most viable way to find a new job, so embrace that activity.  Become a confident networker if not an expert.  Include virtual networking in your portfolio via LinkedIn, email outreach, and other social media platforms.  Consider the value of your skill-stack to support a career move to a high-performing industry segment.  Be open to freelance work as a bridge strategy to a full-time situation, or maybe a new career.  We cannot predict the jobs that may go away or those that will be created.  It is safe to say, however, that new career opportunities will be available to you if you do your research and seek them out.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

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Job Search in the Latest New Normal

ITB Partners Members Meeting

We have reached the halfway point for 2020, which may be the strangest year of my life.  Your’s too, most likely. Working through the challenges presented by Covid-19 is certainly remarkable.  Few if anyone I know, has ever experienced a pandemic of this nature or the measures required to moderate its spread.  And then, the follow-on weeks of civil unrest. Yes, this year has been surreal.

The sudden transition from a booming economy to a voluntary lockdown has been jarring.  Overnight, we have gone from historically low to depression-level unemployment.  The relief provided by the Federal Government is unprecedented. It has helped employers and employees survive the lockdown.  To some extent, however, it may have been counterproductive as minimum wage earners lack the incentive to return to work before their benefits expire.  Nevertheless, many furloughed at the beginning of ‘shelter in place,’ lost their jobs as employers face the realities of survival.  Some of these people have reached out to me for help.

The underlying structure of the economy is still intact.

Even though many jobs are gone, at least temporarily, the underlying structure of the economy is still intact. This has not been a traditional recession where a bubble in the economy collapses.  It is closer to a natural disaster save for the destruction of infrastructure. The manufacturing, supply chain, logistics network has suffered a minimal impact.  The financial services sector has fared well.  The Service Sector has been hardest hit as the need for social distancing directly impacts their business model.  By design, the Service Sector is based on close personal contact. Even so, the road back to prosperity has not been closed.  The level of employment is rapidly improving.  There is a reason for guarded optimism.

My neighbor is a good case study.  He was furloughed from a senior-level construction and development position for a major restaurant brand.  By the end of the lockdown, his position was eliminated as his employer decided to reduce their development plans for 2020.

The good news is that he is a licensed Architect.   He has other options.  In fact, he has landed freelance work with architectural firms.  Additionally, he has found that positions, like the one he lost, are available locally.

I have received a significant uptick in calls from job seekers requiring help.  A few have not had to look for a job for many years and want to understand the changes in the recruiting and selection process.  Others are looking to become more competitive by improving their job search skills, resume, and other collateral material.  Most find the process confusing.  They seek clarity and direction.

Questions for The Job Seeker:

    • How is Your Situational awareness?
    • Are you savvy about the labor market dynamics?
    • Do you have a full appreciation for your options?
    • Do you understand the needs of your audience, employer risk?
    • Do you think and behave like a brand?  Be the product/brand!
    • How are your communication skills?
    • Do you understand how to navigate interview traps and pitfalls?

Situational Awareness:

The first step in the job search process is to gain situational awareness.  Job seekers face a dynamic market, especially for senior management. Employers are working mightily to remain relevant.  They face intense pressure from traditional and disruptive competition. Even the strongest brands can become distracted by mergers, acquisitions, downsizing, right-sizing, productivity improvement initiatives, etc. The newest challenge is, of course, a heightened concern for employers’ ability to survive the devastating impact of the pandemic driven lock-down.  Brands must not only survive the lock-down, they must learn to thrive in an environment requiring a greater focus on sanitation and hygiene.  They are forced to adapt, in real-time, as humanity suffers the first wave of the Covid-19 pandemic. Employers have cause to substitute technology for human capital.  Many companies will never reopen. This is not all bad.  Successful companies will become stronger, increasing demand for employees.

Conclusions and Recommendations:

What is your evaluation of the situation?  Are you working in an industry sector more, or less impacted by the virus?  Are your skills still in demand?   Do you need new skills or a tune-up?   What opportunities have been revealed?  How should you adjust your strategy?  Relevancy is a fundamental issue for job seekers.  If you need help, seek out professionals who understand the situation.  Remember, you are the product.  Be the product!  You must adjust and adapt to the “Latest New Normal.”

I will explore the remainder of these challenges in the next few weeks.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

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A Compelling Story Is Your Launchpad!

Compelling Stories Matter

In mid-June, I received an email from my next-door neighbor asking for help with a project.  Bob had just completed the first draft of a book and was beginning to think about the publishing process.  He thought I could help sort out his options. Six months ago, Bob shared his idea for a book so I wasn’t surprised by his request.  He wanted to tell a story about the challenges of becoming a Plant Manager, based on personal experience.  His interest was to write a novel in the style of “The Goal,”  by Eliyahu M. Goldratt and Jeff Cox.  It appears that the Covid-19 voluntary lockdown provided him with the perfect opportunity to write his book.   We scheduled a Beer Summit for 4:00 p.m. Saturday.

Bob arrived at our side door, off the kitchen, with a six-pack of chilled Pilsner Urquell.  That was a pleasant surprise as I had just stocked our beverage center with a few of my favorite brands.  He explained that Pilsner Urquell is a brand he came to appreciate while stationed in Germany.  Always interested in trying a new brew, I thanked him and grabbed two glasses.  After a brief toast, we exited the kitchen door to the deck and found seats on the shaded corner around the fire pit.  The beer was a good choice.  We began to talk.
He reminded me of his plan to write a book to help launch a consulting career.  The opportunity presented itself, so he took it.  Bob said that he had been talking to friends about their publishing experience.  So far, the feedback he had received was about traditional publishing.  He said he wanted to hear about my self-publishing experience.  I told him how I had published my book on Amazon, and I volunteered to introduce him to colleagues who had significantly more self-publishing experience.  Also, I suggested that he distribute his manuscript to ten or twelve trusted friends to gain their perspectives.  Bob asked if I would like to read his draft. I happily agreed.
The following Saturday, we met again to discuss his manuscript.  As with our first meeting, Bob supplied the beer, this time a six-pack of Guinness, one of my favorites.  We found our spots on the corner of my deck and opened our beers.  Small talk followed as we eased into serious conversation.
Bob had emailed his manuscript in MSWord format.  I read it in ten-page printed chunks, making notes on those pages.  Before handing Bob his marked-up manuscript, I explained that my focus was on the quality of the story, not the grammar, sentence structure, or syntax.  I made notations of issues in those areas for his consideration, however.
As I handed Bob the manuscript I complimented him for creating a remarkable story and enjoyable read.  I went on to say that my only recommendation was that he consider changing his opening chapter.  Bob had used the first chapter to introduce Bud, the main character.   My suggestion was that Bob presents Bud’s biographical information in a series of flashbacks to provide perspective as to how his experience informed his problem-solving and decision-making process.  By doing so I believe it would generate stronger reader interest by captivating their imagination at a more dramatic part of the story.

Summary and Conclusion

Everyone likes a good story.  It is human nature, part of our DNA so to speak.  For millennia, humans have entertained themselves by telling stories around the proverbial campfire.  One can imagine the origin of the first Fish Story, “you should have seen the one that got away.”
Things have not changed that much in the 21st Century as a good story is still the preferred way to sell a product and to keep one another entertained.  In fact, I stress this point with my consultants and coaching clients.  If one wants to be considered a Subject Matter Expert, (SME) or become recognized as a leader in their field, they must be able to sell themselves.  In other words, we must be effective communicators.  Our skillset must include mastery of the written word as well as verbal communication skills.  A compelling story can be your launchpad for more effective networking, blogging, and speaking.

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner,  ITB Partners

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The Bridge to “There!”

March 15, 2020

I taught my grandsons there are only two places in the entire universe:  “Here” and “There!”

When one would ask if I had seen his baseball glove, I would respond, “No, it’s not here. So it must be there!” They thought that was pretty neat and I would overhear them telling their brothers the same thing!

So as a business owner, you should know where you ARE – you have your numbers.  But where do you WANT to be – say in 5 years? Where is your THERE?? What does it look and feel like? Why do you want to get there?

Having worked with hundreds of business owners domestically and internationally, I am always saddened to have a client tell me they don’t know or aren’t sure where they want to be in that time frame.

I remind them of what the Cheshire Cat told Alice, “If you don’t know where you’re going, any road will get you there!” But that “there” may not be the “there” where you intended to go!

No one disputes the necessity of planning, but the truth is that many business owners spend more time planning a vacation or a hunting trip than planning the future of their business.

I believe the primary reason is that the cares of the daily operation of the business choke out the priority of setting aside time to do the reflection necessary for a clear path forward. Stephen Covey wrote about the conflict in his seminal book First Things First, where he addressed the URGENT against the IMPORTANT.

In Quadrant I are the Urgent AND Important issues; these are the fires that have to be put out to keep the business running. Operational breakdowns, bad quality, customer complaints, delayed shipments, employee disagreements, and the list goes on!

Quadrant II is where the Important issues that are NOT Urgent reside.  This is where ALL the important issues of life reside: date night with the spouse, attending the kid’s ballgame or dance recital, reading important literature, meditating/praying, planning, reflecting, taking care of our health. We all recognize the importance of these activities in our lives, but our spouse won’t divorce us if we miss a date night – – – the fires burn up our relationships.

The paradox of this is that the ONLY way to get control of Quadrant I is to camp out in Quadrant II! Do the planning necessary to PREVENT the fires in the first place!

Let’s be honest, charting the path for a business five years out can be a daunting exercise, but it is essential to arrive at our “There!”

Strategic planning is of paramount importance. If you would like more information, feel free to contact me for a FREE 45-minute “The Bridge to There” presentation in your operation. Get a high-level view of what your future path can be!

Ralph Watson

Ralph Watson has a varied and extensive career spanning 45 years of increasingly responsible positions in both sales and operations in a very diverse mix of industry specialties, including food processing, textile and apparel, financial services, and professional management consulting.

 

 

Ralph served as a Senior Executive Analyst with a number of international consulting companies focused on the family-owned, privately held market where he distinguished himself as one of the top analysts in a highly competitive field.  In early 2014, he personally coached 10 businesses in Europe.

Ralph C. Watson, Jr.    404.520.1030

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners

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Planning for the Rebound – Part 2 of CEO Preparedness Guide

Planning for the Rebound

Business is Reopening

Like the eye of a hurricane, businesses raked by the leading edge of the COVID-19 pandemic are now taking a cautious look outside. Though the winds have subsided, and it’s tempting to think that the worst is over, the eye simply gives us a chance to prepare for what’s left to come. But the time is now to begin planning for the rebound.

If you withstood the worst of the impacts of the pandemic so far, you likely have accepted that the storm was coming, and had battened down your hatches (or at least applied for PPP funding to keep vestiges of your business afloat). Now, as we can start to imagine a future, it’s critical to have your plan in place when the rebound hits.

For those who haven’t been willing to consider the details needed in your post-pandemic recovery plan – or simply weren’t willing to “go there” – now is the time to plan for your rebound.

The public has been released from their quarantine in many states and other states are scheduled to open. Research indicates consumers will be ready to shop and dine. The world into which they will venture will indeed be changed. Will their appetite for dining with you also be transformed?

In my view, planning for the rebound – the re-grand-opening into the brave new world – will require a three-step planning process:

  1. An accurate assessment of NOW – Analysis and cost-cutting based on where you are today, and how you’ll conduct business until social distancing is no longer needed;
  2. Planning for NEAR – Executing on pivots or changes to your offerings to help your cash flow to improve your survivability, and;
  3. Plan NEXT – Stop random acts of marketing and follow the 12-step approach that follows “The Growth Gears,” a strategic marketing book authored by Art Saxby and Pete Hayes, to plan for your recovery.

https://www.growthgears.com/

Let’s explore further.

Step 1: ACCURATE ASSESSMENT OF NOW

Where have your customers gone? Are they still in need of your unique brand of hospitality? Have you maintained your competitive edge? Can you keep your employees active and engaged in the business? Many businesses are grappling with these and other questions, as they fight for survival in an apocalyptic present, and uncertain future. Here are four tips to consider when planning for the rebound and assessing your business:

      • Review costs

Most people have already done this – things like canceling recurring services that are simply irrelevant, asking for payment terms on necessary services, and in general, having a series of difficult conversations about labor, supplies, and rent. Job No. 1 is to understand your cash flow – and factors influencing it.

      • Review competition

        What is your competition doing now? How have they pivoted? Did they reduce hours of operation?  Were they forced to close? Is there something you could do with your local competitors to encourage customers to order takeout and delivery?  For example, an entity called “The Great American Takeout” has formed, and has encouraged customers via social media posts to takeout food to support restaurants every Tuesday since March 24.

      • Reconnect with your employees

Did you furlough or lay anybody off? With the crew that is left, what has the pandemic done to morale? How are you? Now is the time for frequent communication with your current and past employees. To prepare for reopening, you should prepare a plan to re-hire and train employees.

      • Reassign tasks

To keep employees on the payroll (assuming you have sales because you are offering curbside pick-up or delivery), reassign team members to answer the phone, shuttle deliveries, or serve as curb-side ambassadors. In the short term, this could also mean repurposing the business for strictly philanthropic purposes. One restaurant invited the American Red Cross to park its Bloodmobile in their parking lot for a blood drive to help medical professionals.

Step 2: PLANNING FOR NEAR

Planning for the rebound needs to happen now.  If you’ve withstood the worst of the pandemic so far, you may find that the tweaks you’ve made temporarily should be considered for permanence. Now, more than ever, understanding the customer’s needs and wants – and how you are positioned to be a guiding force in their upturned lives – can be a make or break proposition. Here are some ways to be a part of this change:

      • Rethink offerings.

If you’re a restaurant, you might offer groceries or sell toilet paper. Most restauranteurs reduced their menu offerings to optimize the to-go experience. For retailers, this can involve sticking with conveniences like online ordering and curbside pick-up. Creativity is key. Here are some creative examples:

        • Red Roof Inns: The lodging company offered up hotel rooms as a remote office and alternative resting spaces during the day for truckers for only $29.
        • Fogo de Chao: The unique Brazilian restaurant shifted its focus to offer curbside packages of ready-to-grill cuts of meat.
        • Wow Bao: The restaurant has begun “selling the materials necessary to make a simplified version of their menu of bowls, buns, and potstickers to other restaurants and ghost kitchen facilities,” according to the website Restaurant-Hospitality.com.
        • Subway: The sandwich chain is testing a Subway Grocery concept in California. The beta program allows customers to order items such as baked bread, deli meats, sliced cheese, vegetables, and soups.
        • Panera: Like Subway, Panera Bread has launched a grocery offering at scale to allow customers to order essential grocery items such as loaves of bread, milk and produce, and to have the items available for delivery or drive-up pickup.

      • Reconsider sacred cows

As businesses rethink their offerings, they can run smack into certain “sacred cows” that seem to be integral to their identity. For example, a full-service eatery may balk at delivery options, since that fish dish might be ruined in the 30 or 45 minutes it takes to deliver it. This is no time for those kinds of pretensions. Find a way to make a meal pack, or focus on offerings that can be delivered successfully. Several restaurants have created pop-up drive-throughs, with no more than a tent and a landlord’s blessing. And the likes of Home Depot have shifted to curbside pick-ups even as it prided itself on counseling customers in the store.

      • Reschedule Initiatives

Retailers and restaurants that had planned remodeling projects could move those up, but only if the resources exist to do so. Only the best-capitalized businesses will be able to embark on a remodeling project now, but if you can move up the date, it’s worth doing while your dining room or bricks-and-mortar location is closed. Of course, such initiatives can still be hindered by government directives that limit non-essential work and will vary by municipality.

      • Reconnect

Communication matters more than ever. We may be keeping our distance physically, but we’ve never been more social. We have regular Zoom happy hours, and we can still call upon clients virtually on a regular basis. B2B companies will have closer relationships since they sell directly to their clients, but B2C companies shouldn’t go quiet either. They need to reach out every few days, so long as they are mindful in tone and content.

On an April 8 webinar sponsored by Valassis and featuring data from Technomic, they suggested:

Planning for the Rebound: Connect to your guests
Source: Valassis

If you can maintain communication with your customers through advertising, social channels, and email, do it.  You must be mindful of your tone and message, but the research of the past 93 years is clear – if you can maintain or increase your advertising during a downturn, especially when your competitors don’t, you will be rewarded with higher sales and market share during the recovery.

Step 3: PLAN NEXT

Opening Soon

Planning for the rebound sooner, rather than later, is critical.  Those who wait for the rebound to begin will be late to the party. If you wait too long,  you will likely lose market share to more aggressive competitors.

With what you’ve gleaned from studying your competitors and company in Step No. 1, above, it’s time to learn more about your customers as they exist today, to get an idea of what and who they may be in the future. The shifts in public policy, social interactions, virtual workspaces, and personal hygiene will likely be tectonic in scope. As a result, you need to understand how the shifts will affect your business and which ones you may be able to exploit.

Ways to learn about your customers now, so you can plan for the Next.

  • Google Analytics – Look for shifts in devices used, demographics, source of traffic, etc.
  • Email surveys – Query your customers about their lifestyle, media preferences, food choices, favorite foods, etc. as they were prior to the pandemic, and as they are now. Do a gap analysis to find opportunities.
  • Read – Information abounds online regarding perceived or guessed new behaviors by many sources. Pete Hayes, CMO, and Principal for Chief Outsiders outlined the basic steps to follow in his blog “COVID-19 Crisis – 12-step Pre-Recovery Checklist for CEO’s. Also, McKinsey & Company posted an opinion on how to prepare for the next stage of the crisis. Their opinion is deeply rooted in management consulting expertise and is more about preparation for the next stage of the crisis vs. recovery.

Regardless of your current posture on the COVID-19 pandemic, it is a certainty that the danger will eventually come to an end. Now is the time to be sharpening your pencils and honing your strategies so you can be ready for the next steps.

Photo Doug Reifschneider
Doug Reifschneider

https://www.chiefoutsiders.com/profile/doug-reifschneider

Thank you for visiting our blog.

Jim Weber – Managing Partner, ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber – Managing Partner, ITB Partners